Despite positive macro environment, inflation still threat to economic stability, growth, LCCI warns

With inflation still at a double-digit rate of 23.71 percent as of April 2025, the Lagos Chamber of Commerce and Industry (LCCI) has warned that the threat of inflationary pressures on economic stability and growth still remains, despite the seeming stability in the nation’s macroeconomic environment.

The chamber, in a statement signed by its Director-General, Dr. Chinyere Almona, over the weekend, therefore tasked the federal  government on the need to ensure the ongoing reforms in food production chain are sustained, until food security for the Nigerian population is attained.

It expressed concerns that despite the fact that the federal government’s reforms have begun to induce investors’ confidence and growth, small businesses in the country still continued to grapple with the realities of high inflation, rising energy costs and limited access to credit and infrastructure.

The chamber argued that though measures such as subsidy removal, exchange rate unification, and fiscal tightening, have laid the groundwork for renewed investor confidence and growth, as reflected in the 4.6 percent Q4 2024 GDP expansion and 3.46 percent annual growth, such gains must, however, be deepened through inclusive, job-creating strategies.

It added that such strategies must support local industries and uplift millions out of poverty.

The business advocacy group, therefore, urged policymakers to convert macroeconomic stability into real economic relief by targeting support to struggling sectors, improving infrastructure, and strengthening consumer purchasing power.

On the World Bank’s criticism of Nigeria’s protectionist trade stance, the Chamber called for a phased reform agenda, between 12-36 months by sector, with support for local industries, modernised customs infrastructure , and expanded social safety nets; since they aligned with AfCFTA goals and enhance the nation’s competitiveness in intra-African trade.

The Chamber also noted that while subsidy savings and FX unification reforms have improved fiscal sustainability and sparked investments, currency devaluation and inflation have heavily impacted SMEs and consumers.

It, therefore, stated that for Nigeria to transition from stabilization to shared prosperity, the federal government must address structural barriers, promote open markets, enhance human capital, and align policies with global and regional competitiveness.

“The accurate measure of reform success must now include job creation, enterprise growth, and rising living standards.

“Emerging opportunities exist in agribusiness, renewable energy, technology, logistics, and clean energy infrastructure.

“Nigeria faces a critical choice between a restrictive, high-cost economic model and one that embraces strategic openness, fiscal efficiency, and private sector-led growth. The LCCI advocates for the latter, reforms that stabilize the economy, empower industries, reduce poverty, and foster long-term prosperity,” the Chamber added.

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